Sun. Mar 22nd, 2026

Food and Public Distribution Minister Pralhad Joshi informed that India has now become the world’s third largest ethanol producer and consumer. In his address at the Sugar and Bio-Energy Conference, he highlighted the efforts of the government to promote the sugar industry and renewable energy. He praised the role of farmers who are moving from being food providers to being energy providers. India’s ethanol blending program has saved foreign exchange worth US$ 11.80 billion (Rs 99000 crore) since 2014.

Progress of ethanol production and use

Ethanol Blended Petrol (EBP) Program

  • The sale of ethanol under this program has significantly increased the revenue of sugar mills, as well as reduced greenhouse gas emissions. • India’s ethanol blending programme has saved foreign exchange worth US$11.80 billion (approx Rs 99,000 crore) since 2014.
  • India has opted out of importing 17.3 million metric tonnes of crude oil due to ethanol blending.
  • Over the last decade, the use of ethanol has reduced carbon emissions by 51.9 million metric tonnes.

Ethanol Blending Target

  • The government has set a target of 20% ethanol blending by Ethanol Supply Year (ESY) 2025-26.
  • E20 petrol (containing 20% ​​ethanol) and E100 fuel (containing 93-93.5% ethanol) have been introduced in the market.

Government assistance

  • The government has paid Rs 1.45 trillion to distillers and Rs 87,558 crore to farmers since 2014.

Process of ethanol production

  • Ethanol, also known as ethyl alcohol (C2H5OH), is produced from sugarcane, corn and wheat.
  • It can be blended with gasoline, increasing combustion efficiency and reducing emissions.
  • Since ethanol is produced using solar energy, it is considered a renewable fuel.

Farmer-centric policies

  • The area under sugarcane cultivation has increased by about 18% in the last 10 years, while sugarcane production has increased by 40%.
  • The introduction of minimum selling price for sugar has helped farmers clear nearly 99% of cane dues of Rs 1.14 lakh crore.

India and Brazil Cooperation

  • There is potential for cooperation in biofuel production between India and Brazil, which is the largest producer of sugarcane.
  • The two countries can collaborate on the development of technologies for ethanol and biodiesel, which will enhance energy security and sustainability.
  • Conclusion: India’s progress towards ethanol production is not only strengthening the country’s energy security but also improving the economic condition of farmers. This is an important initiative for India’s development in the field of renewable energy.

Ethanol

  • Also known as ethyl alcohol (C2H5OH), it is a clear, colorless liquid with a characteristic odor.
  • It is 99.9% pure alcohol.
  • It is considered a renewable fuel and can be produced from sugarcane, maize and wheat, which have high starch content.
  • Due to the amount of oxygen it contains, it can be blended with gasoline to increase combustion efficiency, thereby reducing emissions.

Uses

  • Fuel: Common blends include E10 (10% ethanol, 90% gasoline) and E85 (up to 85% ethanol). It reduces greenhouse gas emissions compared to pure gasoline.
  • It is used as a solvent in pharmaceuticals, cosmetics, and personal care products.
  • It is used in the production of chemicals, plastics, and synthetic fibers.
  • It is the main component of alcoholic beverages such as beer, wine, and spirits.

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